The Federal Government of Nigeria has implemented significant cuts to import duties on vehicles, rice, palm oil, and sugar as part of its fiscal policy measures effective April 1, 2026. Notably, the duty on fully built passenger vehicles has been reduced from 70% to 40%, while bulk rice now attracts a duty of 47.5%, down from the previous 70%.
In addition to these reductions, the effective rate for crude palm oil imports has been set at 28.75%. These changes are part of a broader strategy to align with the ECOWAS Common External Tariff framework, aiming to enhance trade compliance and protect local industries. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasized the importance of these measures, stating, “These Fiscal Policy Measures, which supersede the 2023 Fiscal Policy Measures, shall be published in the Official Federal Government Gazette.”
The government has also introduced new excise duties on non-alcoholic and alcoholic beverages, cigarettes, and tobacco products, which will take effect from July 1, 2026. Furthermore, a green tax surcharge is set to be implemented on the same date, indicating a shift towards more environmentally conscious fiscal policies.
For importers who initiated transactions before April 1, 2026, a 90-day grace period has been granted. Edun noted, “A grace period of ninety days commencing from the date of this circular is hereby granted to all importers, manufacturers, and service providers.” This allowance is expected to ease the transition into the new duty structure.
The policy also includes an Import Adjustment Tax affecting 192 tariff lines and an import prohibition list covering 17 items from non-ECOWAS countries. Import Adjustment Taxes are set to be gradually reduced annually until full elimination by 2036, starting from January 2027. Edun remarked, “However, with effect from January 2027, all Import Adjustment Taxes, except for products on the African Continental Free Trade Area 3 per cent list, shall be gradually reduced on an annual basis until full elimination to zero per cent by 2036, in line with Nigeria’s commitments.”
Additionally, waste polyethylene terephthalate has been added to the export prohibition list, further indicating the government’s intent to regulate imports and exports more strictly. These measures are expected to drive long-term economic growth and enhance Nigeria’s position within the regional trade framework.
As the new policy replaces the 2023 fiscal guidelines, observers are keenly watching how these changes will impact local industries and the overall economy in Nigeria. Details remain unconfirmed regarding the specific outcomes of these measures, but the government anticipates that they will bolster trade compliance and support domestic production.